For sale: airport with 1 runway and 35.1 million customers

If you have around £1.8bn to spare, then can I interest you in an attractive investment opportunity? This is a rare opportunity to acquire a popular airport business in a much sought-after location…

Gatwick is the airport in question. The UK’s second-largest airport, Gatwick, has been put up for sale by its owner BAA following an investigation into the UK airport market by the Competition Commission.

There are several potential buyers of Gatwick. Even Virgin Atlantic, which flies out of the airport, has indicated interest in being part of a consortium that might bid.

One issue that potential bidders face is the growth potential of Gatwick. It has just one runway and, with 35 million passengers each year, it is believed to be close to full capacity. However, the Civil Aviation Authority has just increased the amount Gatwick can charge in landing fees.